November 24, 2020
Core and non-core
OneLife is a Luxembourg insurance carrier fully specialised in international cross-border business in Europe and beyond. In the course of our business, we cleary differentiate between “Core” and “non-Core” countries.
“Core” countries are jurisdictions for which OneLife has designed or prepared a specific insurance product in accordance with local legal, regulatory and fiscal constraints. For example, the countries for which OneLife has designed and validated a specific insurance product are Belgium, France, Luxembourg, Portugal, Spain, Denmark, Sweden, Finland, United Kingdom.
On the other hand, a “non-Core” country is a jurisdiction for which OneLife has not designed or prepared a specific insurance product in accordance with local legal, regulatory and tax constraints. For example, certain countries of the European Economic Area (“EEA”) and countries outside of the EEA.
European Economic Area
As above and notably with regards to EEA countries, it is worth mentioning that OneLife as an insurer established in an EEA country and authorised by a regulatory authority within the EEA, is authorised from a regulatory point of view to distribute insurance products to residents of any country of the EEA. However, an insurer planning to operate in a given EEA jurisdiction shall conceive an insurance product suited to the constraints or legal/fiscal frameworks applicable in each of the EEA countries. Indeed, the taxation, the applicable law as well as the reporting obligations on insurances are not fully harmonised at European level, which means that having a single product compliant with all the legal/tax regimes of all the countries of the EEA is therefore not possible.
Along the same lines and with respect to non-EEA countries, OneLife as an insurer established in an EEA country is not necessarily authorised from a regulatory standpoint to distribute insurance products to residents of a country outside the EEA (i.e. usually a local insurance licence is required). However, and in line with the legal, fiscal and regulatory compliance of the products, OneLife may feasibly distribute according to the principle of “passive solicitation” an insurance product under Luxembourg law or under law of the nationality of the policyholder outside the country in question. This exercise requires however a thorough expertise and deep analysis of each of the jurisdictions in order to ensure that the insurance product is not necessarily challenged by the local authorities or even nullified.
In the course of our business, we have observed how certain geographical areas such as the Middle East or South Asia represent a significant opportunity in terms of European expatriates, and is the reason why we have accompanied several of our partners and clients in their relocation planning, whether short or long term.
Expertise to ensure compliance and peace of mind
To conclude, the distribution of insurance products “across the globe” is a complex matter which needs to be carefully assessed by experts. In that respect, we at OneLife always encourage our Partners and clients to seek advice through us in order to ensure peace of mind and full compliance with the respective local frameworks.
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